Amazing Spider-Man - Renew Your Vows 005 (2015) by Dan Slott

By Dan Slott

The Parkers vs. Regent.

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Their use in strategy is strictly limited. Sensitivities One way of dealing with this is to consider sensitivities. The decision maker studies what would happen if an important variable in the environment turns out to be somewhat different from the forecast. For example, we could consider what would happen to profitability if sales were to be lower by 10%. However, this begs the question whether sales could be down by that amount. And if so, whether it is reasonable to assume that this would happen in isolation.

Will the organisation still survive? Forecasts do not communicate uncertainty. Their use in strategy is strictly limited. Sensitivities One way of dealing with this is to consider sensitivities. The decision maker studies what would happen if an important variable in the environment turns out to be somewhat different from the forecast. For example, we could consider what would happen to profitability if sales were to be lower by 10%. However, this begs the question whether sales could be down by that amount.

The most fundamental aspect of introducing uncertainty in the strategic equation is that it turns planning for the future from a once-off episodic design activity into an ongoing learning proposition (Eden 1987). In a situation of uncertainty planning becomes learning, which never stops. We have an in-built urge to try to pin down situations, and to try to reach a point where we have got it sorted out in our mind. If uncertainty is acknowledged it is not any longer possible to take this position of ‘‘we have done the planning’’.

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